The NZD/USD as of this morning is traversing values last seen in the second week of March, the 0.59040 ratio is being traded with the currency pair’s typical fast action and wide spread. The ability of the NZD/USD to sustain its higher results made this week as the broad Forex market has also shown risk appetite and a weaker USD may be attractive to day traders.
Financial institutions are clearly still making themselves comfortable with the notion that risk taking is worthwhile for the moment. Although there are certainly shadows remaining because the Iranian situation remains unresolved, it is clear large players have been willing to show risk appetite as global equity indices have done better. The NZD/USD move above the 0.59000 is a test of an important psychological level.
O.59000 and Confidence in the NZD/USD
The NZD/USD remains a widely attractive currency pair to day traders because of its capability to create velocity and stark reversals. The NZD/USD is a wagering playground for many speculators, but they also know risk management is essential. The 0.59000 was penetrated on Tuesday and yesterday’s consistent marks above the ratio show that financial institutions may accept the higher realms. The NZD/USD has correlated to the broad Forex market with USD weakness apparent – at least in the near-term.
The NZD/USD has certainly been higher. From late in the third week of January until the end of the second week in March the NZD/USD was within higher realms with the 0.59800 to 0.59900 vicinities frequently being tested. In fact from late January until the middle of February the 0.60000 level saw plenty of action above. On the 27th of February, the NZD/USD was around 0.60005. Can the 0.59000 level in the NZD/USD be sustained?
Sustained Highs and Searching for Another Leg Up
The broad markets are within the midst of a confidence game. The U.S major indices are within intriguing territory testing apex values.
Other major currencies like the EUR and GBP have been gaining.
However, a thorn still exists within the heels of NZD/USD speculative thoughts, because the currency pair remains below pre-Iranian war levels at a distance.
This could be interpreted as anxiousness with the New Zealand Dollar which has consistently underperformed against the USD over the long-term by financial houses.
It appears the NZD/USD needs another dose of positive sentiment generated before it tests greater heights.
Looking for upwards traction may be logical for NZD/USD traders to try and ride momentum.
Perhaps the use of support levels as an ignition to buy can be used by cautious bullish traders in the short and near-term.
With one and half days remaining in the week, NZD/USD speculators are still confronted by notions of the Middle East war and must make a decision to try and take advantage of optimistic sentiment or bet against it before the weekend arrives.
NZD/USD Short Term Outlook:
Current Resistance: 0.59065
Current Support: 0.58975
High Target: 0.59290
Low Target: 0.58710